Kudrna's Stock Market Talk

Last week was the first week of 2012 that the markets closed lower than they started. The modest move lower did little to remedy the majority of extended stocks. For most of the week, any weakness was quickly bought by anxious dip-buyers and only until Friday did we actually receive true weakness. However, even that weakness was contained as many market players were positioned for a much deeper pullback.  That, in itself, may have been a reason the pullback was contained as many were prepared. (more…)

Another frustrating week for the bears.  Bears continue to pound their heads against the wall as nothing seems strong enough to take the markets down.  Weaker-than-expected GDP did not even phase the markets much on Friday.  With the FOMC keeping interest rates low until 2014 and reducing growth expectations in 2012, we not only have have a fragile economic recovery, but we are continuing to pressure the savers/retirees for at least a few more years. (more…)

The trend continues and bonds sold off this week helping fuel more upside gains in the stock market. As noted in last week’s homework, a weekly trend has developed in bonds as they strengthen one week only to sell off the next week. That would mean if the trend continues, bonds will strengthen once again this week which could limit upside gains or even create a stock market pullback. (more…)

Our first full week of the new year and even with some red flags, we ended the week slightly higher.  The Europe crisis has shown its face once again and Friday saw a list of credit downgrades dominate the headlines all day long.  Even as I write this days later, you can find articles galore discussing that topic.  The situation is not pretty, but these downgrades should not come as a shock.  (more…)

For the first week of 2012, it was not a bad week at all.  The action wasn’t overly impressive for the bulls, but considering most were expecting a pullback, the bulls held strong. The question everyone is pondering is whether we will have some sort of pullback or are we going to continue to rise.  Friday may have hinted at more upside in the short-term, but we may need bonds to sell-off faster for this to happen. (more…)

A new year begins and 2011 is old news, regardless if it was good or bad.  You must forget about it either way. If you had a bad year, learn from it and make 2012 better.  If you had a good year, figure out why it wasn’t better and don’t be overly confident/reckless going into 2012.  This will help ensure you have better odds of repeat success. This is the time to wipe the slate clean and focus on the upcoming 2012 performance.  This is not about what you did in the past, this is what you can do for me now. Short-term memory, forget the past outside the lessons learned.  (more…)

For what took five days to achieve, we lost in one trading day last Wednesday.  (more…)

As earnings season is just kicking off, the recent crop has shown mixed reports, some good and some bad. (more…)

As discussed yesterday, tonight I’m going to cover some potential long trades for the week. (more…)

Another week, another opportunity to make some cash. This week we will start testing some more long-side trades once again, but remember this is a higher risk scenario for a few reasons. (more…)